on May 21, 2019
I’ve talked to plenty of people who are excited about retirement and all the changes it will bring. They dream about dropping everything, moving to Florida or Arizona, and living the “good life.” Others envision buying an RV and driving around the country, untethered. While these dreams are worthwhile, I advise everyone to approach them with a little healthy caution. Consider some of the worst-case scenarios and plan for them.
If you’ve been following my blog, you know I’m a huge advocate of planning! A little planning today could makes worlds of difference tomorrow. It’s true in your everyday financial decisions (see my post on planning an emergency fund) and it’s true for retirement decisions.
If you are considering moving after retirement, don’t jump into it with haste. Take a step back and consider these four things:
1. Does your family live nearby?
Family is an important factor in many retirees’ lives. We gain fulfillment from visiting and spending time with our loved ones—it’s something that really can’t be replaced, no matter how great our new friends may be.
If you’re planning on moving to a place that’s far away from most of your family, you’ll likely have to add a little extra to your annual budget to account for air travel or long road trips. When you include the cost of eating out and staying in a hotel, your expenses really start to add up. Be sure to consider these additional expenses when you’re entertaining the idea of moving to a distant state (or country!).
2. What is the cost of living?
When you’re looking at moving to a new city or state, you’ll inevitably become familiar with the cost of housing. However, that’s not the only cost to keep in mind. The cost of living can fluctuate wildly from state to state, and from city to city. The price of food, entertainment, auto care, and even a haircut can vary dramatically, and it’s a good idea to keep that in mind when you’re planning your move. To estimate how your cost of living might change, check out Bankrate’s handy cost of living calculator.
3. Are you in a “danger zone?”
Though Florida has its charms, it also has hurricanes. Though San Diego is known for its mild weather, it is also a drought area with some of the most expensive water in the nation. When you’re thinking about moving, take note of an area’s climate and how it may affect your costs. Will you have to crank the A/C most days of the year? Will you have to invest in flood or hurricane insurance? Will you have to buy storm windows to prevent glass from breaking in high winds? Climate and weather-related costs can add up quickly.
4. Have you spent much time in your “dream area?”
Though Hawaii or Orlando or LA may sound enticing, it’s hard to really know what they’re like until you’ve spent a good chunk of time there. Before taking the dramatic step of buying a home in a brand new state, try it out first. If you’re thinking about moving to a certain spot, try spending several months there. Rent a long-term AirBnB or hotel room, and become a short-term resident for four or even six months. Maybe you’ll quickly find out that Hawaii gives you “island fever,” and you feel much more confined than you thought you would. Maybe you don’t care for all the tourism in Orlando or the traffic in LA. The only way to discover some of these things is to immerse yourself in an area and try it out.
Bonus: If you do move someplace for several months and decide you like it, being there will give you a chance to explore specific neighborhoods. This, in my opinion, is the best way to figure out where you’d like to buy a home and establish permanent residence. It’s difficult to house shop from afar, and the last thing you want to do is purchase a home that is in a less-than-ideal neighborhood for you.
Should you move after retirement? That’s completely up to you! Whatever you decide, make sure you do your due diligence and take the time to plan. It will be well worth it in the long run.